The AI startup landscape in 2024 is marked by significant investment and intense competition. Notably, 35 US AI startups have raised $100 million or more in 2024, contributing to a global investment total of over $35.5 billion in the first half of the year. Leading AI startups, including Character.ai and Aleph Alpha, are facing challenges in competing against better-funded rivals and Big Tech companies. Despite the influx of capital, many AI startups are on a trajectory to lose billions and require constant fundraising. Top venture capitalists have identified 44 of the most promising AI startups of 2024, highlighting the industry's potential and ongoing interest from investors. Additionally, the 2024 AI 100 are tackling some of the hardest challenges across industries, making them essential for investors and incumbents to watch. YC has also seen a rise in AI companies.